Increased royalties and new local content requirements are under discussion in Brasília. The process echoes the complexities in reforming oil royalties, although we see several factors pointing to a smoother resolution.
In a further sign that the presidential campaign may be beginning, the president will visit three north-eastern states, shortly after detailing her legislative agenda for 2013.
In each of the past six months, inflation figures have exceeded expectations. The market still seems to be giving the central bank another chance.
Ever since Petrobras embarked on its controversial capital-raising exercise of 2010 a sense of malaise has surrounded the state-controlled oil company’s relations with investors. The company’s operating performance has been sluggish at best and its shares have sunk so badly that they contributed in large part to the dreadful recent performance of the broader equity market.
Local commentators have debated the significance of a televised address by President Dilma Rousseff, in which she defended the government's record on electricity tariffs and belittled opponents.
Growth forecasts continue to decline, with uncertainty as to whether the exchange rate will become a more active part of policy
The central bank has reiterated its tougher stance on inflation, supporting our view that the authorities are unlikely to risk additional rate cuts ahead of next year’s elections
Inflows topped $5bn in December, supporting our view that corporate investors have not been deterred by weakening growth
Disbursements by the development bank rose nearly 30% YoY, raising expectations that the fall in investment may be over
Not so long ago, adventurous tourists would only take carefully organised tours of the favelas that are perched in the hills of southern Rio de Janeiro. Now increasing numbers are actually spending their holidays there.